Invest
‘Unusual’ patterns surface in Australian investment markets
The Reserve Bank has pointed to surprising, unusual patterns in Australian investment markets in recent months, which investors should be conscious of.
‘Unusual’ patterns surface in Australian investment markets
The Reserve Bank has pointed to surprising, unusual patterns in Australian investment markets in recent months, which investors should be conscious of.
The RBA noted that it is “unusual” that property prices are falling while interest rates are at historic lows, and unemployment figures are also low.
The price drops have been driven by weaker demand in conjunction with increasing supply, the RBA said in its latest Financial Stability Review.
Across the board, housing prices in Australia are now 7 per cent below their peak two years ago.
This is set to continue. The surge in supply of properties in Melbourne and Sydney, specifically apartments, will continue to push prices down.
These patterns could see a spike in the incidence of negative equity, the RBA said.
“The prevalence of negative housing equity is low, but substantially larger price falls would see a large share of households’ housing equity eroded or even turn negative,” the RBA said.
When will house prices go up?
Economic and property experts are beginning to predict the market will bottom out by the end of the year, with price recovery beginning into next year.
Some, like accounting and advisory giant KPMG, believe Melbourne will recover at a faster pace than Sydney, based on supply considerations.
You can read KPMG's in-depth forecast here.
Stock market
Is it too late to start investing in market index ETFs?
With the Australian market recovering its losses since the pandemic began, nestegg asked an industry expert if it was too late for investors to begin their investing journey. ...Read more
Stock market
Is it time to buy reopening stocks?
Investors are being advised to look into stocks that could benefit from markets reopening, an analyst has stated. ...Read more
Stock market
Stocks to watch in 2021
Easing political uncertainty, new vaccine hopes, central bank’s willingness to do all it takes and more, and new stimulus packages are likely to act as tailwinds for investors, an analyst has said. ...Read more
Stock market
Australia’s October stock picks revealed
Australian retail investors piled predominantly into high-growth industries such as electric vehicles stocks, cloud computing and recent third quarter IPOs during the month of October, new research ha...Read more
Stock market
The US election created a ‘goldilocks scenario’ for financial markets
As the votes continue and the results are collated, the US election is increasingly likely to create a “goldilocks scenario”, an industry expert has said. ...Read more
Stock market
How a Democrats sweep could benefit the Australian market
As Americans go to the polls, a Biden victory could help Australia’s sharemarket, an investment bank has revealed. ...Read more
Stock market
What investors should do before the US election
As the election date draws near, investors are being urged to forget the “fireworks and noise” and focus on the long-term fundamentals when investing in the US. ...Read more
Stock market
Big 4 bank flags remediation hit
One of Australia’s big four banks is gearing up to pay another hundred-million-dollar fine, according to the company announcement. ...Read more
Stock market
Is it too late to start investing in market index ETFs?
With the Australian market recovering its losses since the pandemic began, nestegg asked an industry expert if it was too late for investors to begin their investing journey. ...Read more
Stock market
Is it time to buy reopening stocks?
Investors are being advised to look into stocks that could benefit from markets reopening, an analyst has stated. ...Read more
Stock market
Stocks to watch in 2021
Easing political uncertainty, new vaccine hopes, central bank’s willingness to do all it takes and more, and new stimulus packages are likely to act as tailwinds for investors, an analyst has said. ...Read more
Stock market
Australia’s October stock picks revealed
Australian retail investors piled predominantly into high-growth industries such as electric vehicles stocks, cloud computing and recent third quarter IPOs during the month of October, new research ha...Read more
Stock market
The US election created a ‘goldilocks scenario’ for financial markets
As the votes continue and the results are collated, the US election is increasingly likely to create a “goldilocks scenario”, an industry expert has said. ...Read more
Stock market
How a Democrats sweep could benefit the Australian market
As Americans go to the polls, a Biden victory could help Australia’s sharemarket, an investment bank has revealed. ...Read more
Stock market
What investors should do before the US election
As the election date draws near, investors are being urged to forget the “fireworks and noise” and focus on the long-term fundamentals when investing in the US. ...Read more
Stock market
Big 4 bank flags remediation hit
One of Australia’s big four banks is gearing up to pay another hundred-million-dollar fine, according to the company announcement. ...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
